Syndicate content

Governance

11 charts from the 2017 World Development Report on Governance & the Law

Tariq Khokhar's picture

What makes government policies work in real life for the benefit of citizens? The answer put forward by World Development Report (WDR) 2017 is better governance – the ways in which governments and citizens work together to design and implement policies.

The report is a detailed exploration of a complex topic. I won’t be able to do it justice in a short blog – I’d encourage you to download the report and summary here.

What I will do though, is pull out a few of the charts and ideas I found most striking while reading through it – have a look below and let us know what you think.

Constitutions have proliferated since the late 18th century

Constitutions – fundamental principles or laws governing countries – have proliferated since the late 18th century. The growing numbers, especially since the 1940s, correspond to the postcolonial increase in the number of independent states, and more recently the breakup of the Soviet Union.

… but they are often replaced or amended

The WDR finds that the effectiveness of constitutions in constraining power through rules is mixed – the average lifespan of a constitution is 19 years, and in Latin America and eastern Europe it is a mere eight years.

Chart: Gender Quota Laws Have Spread Worldwide Since 1990

Tariq Khokhar's picture

Over the last 25 years, different forms of gender quotas for representation in national legislatures have spread globally. Out of 74 countries studied where gender quota laws were passed, the 2017 World Development Report finds that 26 had achieved the quotes, and as of 2016, 48 countries had yet to do so.

Read more in 11 charts from the 2017 World Development Report on Governance & The Law

Looping in local suppliers rather than forcing out international firms

Anabel Gonzalez's picture



An instructor at the Savar EPZ training center in Dhaka, Bangladesh, helps young women being trained to make shirts. Photo Credit: © Dominic Chavez/The World Bank


Increasing economic prosperity for developing countries is related not only to rising trade, but also – and more important – to transforming the traditional composition of what they produce and export. In the world today, many developing countries strive to diversify away from exporting commodities toward higher-value-added goods and services.

The evolution of trade and investment flows over the last three decades shows that foreign direct investment (FDI) can be a powerful driver of exports, a creator of well-paid new jobs and a crucial source of financing. More important, FDI may become a very rapid and effective engine to promote the transfer of technology, know-how and new business practices, helping to raise productivity and setting a country on the course of convergence. This is particularly the case of efficiency-seeking FDI – that is, FDI that locates productive processes in a country seeking to enhance its ability to better compete in international markets-.
 
The benefits of FDI are further leveraged when local firms can catalyze the presence of foreign investors to connect to global and regional value chains (GVCs). As a result of new international firms investing in a host country, great new opportunities arise for local enterprises to supply the inputs – be it goods or services – that their international counterparts need.

This has been the experience of Bangladesh, where local suppliers have grown in tandem with foreign investors in the garment sector. It is through linkages with international investors that local firms can gradually be lured into producing new goods and services that, until then, were not produced in the host country.  This is how economic diversification and greater value added are generated.

Multinational enterprises (MNEs) and their key partners (Tier 1 suppliers) are generally keen to source locally if a competitive local supplier can be found. However, they are also reluctant to absorb high search-and-find costs, and they will typically not invest in assisting local suppliers with upgrading efforts. Likewise, local firms are generally keen to supply to foreign firms, but are often not ready to make the necessary investments in technology and in processes to meet strict quality standards without a clear line of sight on potential payoff for such investment.

Devolution of PPP enabling environment institutions: The leadership cascade effect

David Baxter's picture



I have seen several trends emerge from discussions I have had over the past year with PPP public sector practitioners about the ability of their government institutions to promote PPP best practices and enhance enabling environments:

Tripling tobacco taxes: Key for achieving the UN Sustainable Development Goals by 2030

Prabhat Jha's picture

Also available in: Spanish العربية | Français

World Bank Group / 2013


Since the World Health Organization (WHO) adopted the Framework Convention on Tobacco Control (FCTC) a decade ago, over 180 countries have signed the treaty. Progress has been made in expanding the coverage of effective interventions--more than half of the world’s countries, with 40% of the world’s population have implemented at least one tobacco control measure, and despite increasing global population, smoking prevalence has decreased slightly worldwide from 23% of adults in 2007 to 21% of adults in 2013. How can greater reductions in smoking be achieved in the next decade and contribute to reaching the health and social targets of the UN Sustainable Development Goals (SDGs) by 2030? We review some key issues in the epidemiology and economics of global tobacco control.

Getting a global initiative off the ground: What can transport learn from energy?

Nancy Vandycke's picture

In May last year, key stakeholders joined the World Bank Group in calling for global and more concerted action to address the climate impact of transport while ensuring mobility for everyone. More recently, the Secretary-General’s High-Level Advisory Group on Sustainable Transport noted, in its final recommendations to Ban Ki-Moon, emphasized the need for “coalitions or partnership networks” to “strengthen coherence” for scaling up sustainable transport, as well as establishing monitoring and evaluation frameworks. These issues have been raised at Habitat III, COP22 and at the Global Sustainable Transport Conference in Ashgabat.
 
As the global community readies itself to move from commitments to implementation, what can transport learn from similar initiatives in other sectors, such as Sustainable Energy for All (SE4All)?

How to manage revenues from extractives? There’s a book for that!

Rolando Ossowski's picture
 
Offshore oil and rig platform. Photo: © curraheeshutter / Shutterstock.


Countries with large nonrenewable resources can benefit significantly from them, but reliance on revenues from these sources poses major challenges for policy makers. If you are a senior ministry of finance official in a resource-rich country, what are the challenges that you would face and how can you strengthen the fiscal management of your country’s oil and mineral revenues? Consider some of the issues that you would likely encounter:

For many resource abundant countries, large and unpredictable fluctuations in fiscal revenues are a fact of life. Resource revenues are highly volatile and subject to uncertainty. Fiscal policies will need to be framed to support macroeconomic stability and sustainable growth, while sensibly managing fiscal risks. Also, there is a question of how to decouple public spending (which should be relatively stable) from the short-run volatility of resource prices.

Innovative solutions for resource mobilization in Zambia

Srinivas Gurazada's picture
Industrial area in the city of Kitwe, Zambia - located in the copper belt. Photo: Arne Hoel

What would you expect in a mineral rich developing country? High Government revenues from the mineral resources? Not always, and definitely not in the case of Zambia - until recently.

Zambia has a considerable wealth of mineral resources and its economy depends heavily on these minerals. Zambia's primary export, copper and copper-related products, account for as much as 77% of the country's exports.

A review of How China Escaped the Poverty Trap by Yuen Yuen Ang

Yongmei Zhou's picture

We chose to highlight this book for the World Development Report (WDR) 2017 Seminar Series as its focus on institutional functions rather than forms and on adaptation resonates strongly with the upcoming WDR 2017.

The first takeaway of the book, that a poor country can harness the institutions they have and get development going is a liberating message. Nations don’t have to be stuck in the “poor economies and weak institutions” trap.  This provocative message challenges our prevailing practice of assessing a country’s institutions by their distance from the global best practice and ranking them on international league tables. Yuen Yuen’s work, in contrast, highlights the possibility of using existing institutions to generate inclusive growth and further impetus for institutional evolution.

Envisioning the global financial system in a decade

Gloria M. Grandolini's picture


4 unprecedented disruptions to the global financial system


Climate change, migration, correspondent banking and cybercrime are putting unprecedented and unforeseen pressures on global financial markets.

They aren’t just disrupting the global financial system, but also affect how we approach international development work.

Let’s examine each trend:
  1. “Greening the financial sector” is the new buzz term to finance a transition toward a climate-resilient economy and to help combat climate change. This topic is now getting a lot of attention from the G20 to the Financial Stability Board. The international community is trying to understand what this transition will imply: how resilient the financial sector is to deal with risks stemming from climate change, and how efficiently the financial sector can allocate financial resources. What we know is that currently fossil fuel subsidies and a lack of carbon tax are hindering the market from shifting financial resources from brown to green.
  2. Globally, an estimated 65 million people are forcibly displaced. Migration, resettlement or displacement, of course, impact where and how to channel aid to those in need. But more importantly, as displaced people settle down -- no matter how temporary or long-term -- to become self-sufficient and thrive, they will need to establish new financial relations. This can be for simple transactions such as receiving aid through payment cards (as opposed to cash) or for sending remittances. Or it can be for something more complex as getting a loan to start a business.
  3. At the same time, as the global banking industry is tightening regulations, large banks are withdrawing from correspondent banking and shutting down commercially unsustainable business lines. This recent phenomenon can have a huge impact in some regions on SMEs and on money transfer operators, which largely handle remittances.
  4. Cybercrime is no longer a sci-fi thriller plot, but a tangible potential risk to both national and international financial markets. The focus on cybersecurity risk has increased along with the proliferation of internet and information technology. Fintech is transforming the financial industry -- by extending access to financial services to people and small- and medium-sized enterprises (SMEs) previously left out of the formal financial system – but is also raising many questions, including concerns about cybersecurity. The same technology advancements that are propelling fintech are also addressing cybersecurity risk. However, there is a need to develop an appropriate regulatory framework in combination with industry best practices. This framework is evolving and regulators are grappling with how and when to regulate.

Pages